Custom Indicators · TD Indicator Strategy · TD9 buy the dip go long

After the stablecoin bill comes out, how can we buy the dip in the simplest and most accurate way while following the trend? The TD indicator can fully meet your needs! Simple, intuitive, and suitable for most traders to get started.

1. What is TD?

The TD indicator is the simplest technical analysis tool. It is used to capture potential reversal points in market prices, assisting investors in making buy and sell decisions. The TD indicator primarily provides clear buy or sell signals for traders by identifying cyclical fluctuations in the market and possible trend turning points.

So it is a left-sided trading indicator that identifies trend reversals in advance, and its advantages in the cryptocurrency market:

Trend reversal is more apparent: In the cryptocurrency market, short-term fluctuations are frequent, for example, the volatility of coins like BTC and ETH is more likely to generate "TD9" trading signals;

Suitable for beginners: The TD indicator is intuitive and easy to understand, and can assist trading through red and green signals.

Combining grid strategy: The TD indicator is also suitable for use with automated strategies, such as the TD9 buy the dip strategy in algorithmic trading.

In other words: TD9 buy the dip is not a "complex technical party game," but rather a way to visualize market price changes as a "counting game," allowing every investor to easily understand and apply it.

2. TD Indicator Strategy Principles

3. Accurately identify the trend's phased bottom, rejecting subjective speculation.

The TD9 buy the dip strategy is based on specific counting rules, using quantitative analysis of the relationship between price fluctuations and trend continuations to identify potential bottom signals from the market's real behavior:

● Core advantage: The TD9 count completely relies on price data, unaffected by market sentiment or individual perceptions, avoiding erroneous decisions caused by traders' excessive subjective judgments.

● Unique mechanism: When the market experiences consecutive declines (meeting the TD9 counting rules), it indicates that the market has entered a state of "selling pressure gradually weakening"; the 9th K-line in this state often suggests that the market is approaching a temporary bottom, and a larger rebound opportunity may be brewing.

In short: TD9 buy the dip is not about blindly catching "any low point," but rather about looking for low point signals where the bottom conditions are gradually maturing and have a high success rate.

2. The "early warning" of trend reversal often prevails at the bottom without waiting for a perfect bottom.

Unlike many indicators that provide lagging feedback in a reversal market, the countdown rule of TD9 emphasizes capturing the critical timing of early bottom reversals:

● TD9 Buy Signal for Catching Rebounds Logic: Weakening Momentum: TD9 countdown means that for 9 consecutive periods, the price has been gradually declining, but the rate of decline is slowing down;

○ The short positions have been fully released: at this point, the concentrated selling from earlier has nearly come to an end, and the bearish energy is exhausted.

○ Huge potential for appreciation: Although the market has not yet formed a clear upward trend, the "stagnation" indicates that buying pressure is about to take control.

The TD9 signal captures hidden reversal opportunities that are difficult for the average person to detect through this mechanism, thereby achieving a trading strategy of "ambushing in advance and seizing the initiative!"

3. Particularly suitable for highly volatile markets, such as cryptocurrencies and forex trading.

The TD9 buy the dip strategy is particularly effective in high-volatility markets (such as Bitcoin BTC and Ethereum ETH):

● The cryptocurrency market is highly volatile, with prices frequently entering oversold conditions in a short period; the TD9 signal can quickly identify these dip-buying opportunities.

● For investors pursuing "buy low and sell high", TD9 provides a clear logic for entering at low points, allowing them to fully take advantage of the volatile price characteristics of the cryptocurrency market.

4. The compound interest effect value of TD9 buy the dip is enormous.

The TD9 buy the dip strategy brings every trade back to the realm of "maximizing the profit-loss ratio". Even if the single profit is limited, its high win rate accumulates over the long term, resulting in astonishing compound interest.

● Small losses wait for big gains;

● Capture market rebounds with disciplined strategies;

● Multiple precise trades, accumulating small gains to ultimately achieve long-term stable profitability.

Three, TD9 buy the dip long signal effect

Figure 1 OKX-BTCUSDT perpetual contract 4-hour period signal effect

4. TD9 buy the dip long strategy backtesting results

Figure 2 OKX-BTCUSDT perpetual contract 4-hour cycle backtest results

Backtesting highlights: Return rate of 98.76%, win rate of 59.65%

Five, Indicator Source Code

// @version=2

// Calculate TD signal

[td] = td(close);

// Define overbought and oversold conditions

overbought = td == 9; // TD9 overbought

oversold = td == -9; // TD9 oversold

// Create Alert

alertcondition(overbought, title='TD9 Overbought', direction='sell');

alertcondition(oversold, title='TD9 Oversold', direction='buy');

// Draw signals on the chart

plotText(overbought, title='TD9 Overbought', text='Overbought', color='red', refSeries=high, placement='top');

plotText(oversold, title='TD9 Oversold', text='Oversold', color='green', refSeries=low, placement='bottom');

// Trading Strategy

// Sell/Close Long

exitLong(overbought, price='market', amount=1);

// Buy/Go Long

enterLong(oversold, price='market', amount=1);

Six, Comprehensive

In trend trading, "buy the dip" has always been one of the abilities investors are most eager to master. However, not only is it difficult to seize the precise timing for buying the dip, but most market declines may also be accompanied by panic sentiment and a continuous downward trend. The TD9 buy the dip strategy, with its unique counting logic and high-probability reversal confirmation signals, truly provides investors with a scientific, rational, and highly practical tool for buying the dip, hailed as the "secret weapon" for capturing trend lows.

The TD9 buy the dip strategy is not only a technical analysis tool but also a scientific trading philosophy. It quantifies market behavior, accurately identifies trend bottoms, and emphasizes risk control, providing traders with a clear decision-making basis in complex markets. Whether you are a beginner or a professional trader, it will be a powerful weapon for achieving your profit goals.